Grangemouth workers already laid off as Starmer’s £200m plan arrives too late to prevent job losses

Keir Starmer has pledged £200m to attract investment to the Grangemouth oil refinery site—but for hundreds of workers, the promise offers no relief. With more than 400 employees already laid off and thousands more supply chain jobs in jeopardy, many believe Labour’s intervention has come far too late.

The refinery’s closure, long foreseen, has triggered outrage from trade unions, who accuse the government of dragging its feet. Starmer, speaking at Scottish Labour’s annual conference, defended the timing of the announcement, insisting a rushed plan would not have been credible. “It’s very easy to put proposals on the table that don’t hold water,” he said. “What I want to do is take the time to do this properly.”

His words have done little to calm anger. Outside the conference in Glasgow, union members protested against what they see as Labour’s failure to act when it mattered most. Sharon Graham, general secretary of Unite, has demanded that the government go further—urging Starmer and Energy Secretary Ed Miliband to temporarily take over the refinery from its owner, PetroIneos, to prevent further devastation.

Labour claims the £200m, sourced from the UK’s National Wealth Fund, will help secure Grangemouth’s future by encouraging up to five companies to establish operations there. Ministers say the funding could unlock an additional £600m in private investment, transforming the area into a hub for sustainable industries.

But critics remain sceptical. Many believe this is yet another example of Labour’s slow response to crisis. The party’s standing in Scotland has already taken a severe hit in recent months, following a series of unpopular economic policies. After scrapping universal winter fuel payments, hiking national insurance, and getting caught up in scandals over undeclared gifts to Starmer and Chancellor Rachel Reeves, Labour has seen its Scottish polling numbers collapse to just 18%. With next year’s Holyrood election looming, the Grangemouth debacle could cost them dearly.

Scottish First Minister John Swinney has wasted no time in capitalising on Labour’s struggles. Just last week, he announced an extra £25m for a “just transition fund” to support the Grangemouth workforce, adding to the £7.8m already included in the Scottish budget. His move has further intensified pressure on Starmer, who now faces accusations of playing catch-up rather than leading from the front.

Unions and industry experts argue that a real commitment to Grangemouth’s future would involve immediate action to convert the site for green aviation fuel production. However, UK ministers claim that years of inaction from previous governments have left major regulatory and technical hurdles standing in the way.

Miliband insists Labour is doing everything possible to deliver a long-term solution. “We have always said that we will leave no stone unturned in seeking a sustainable industrial future for Grangemouth and its workers,” he said.

Despite these assurances, many of those affected remain unconvinced. For them, the government’s promises mean little when their jobs have already vanished.

With livelihoods at stake and Labour’s credibility in Scotland crumbling, the battle for Grangemouth is now about far more than money—it’s about trust.

FINANCIAL TIMES

The UK government has committed £200mn to Grangemouth, aiming to ease the impact of Scotland’s only oil refinery closure. Chancellor Keir Starmer hopes the investment, managed by the £27.8bn National Wealth Fund, will attract significant private sector funding for biofuels and hydrogen production.

Petroineos, the refinery operator, plans to shut down operations in April or May, affecting over 400 jobs. The Scottish government has also pledged £25mn, urging Westminster to act faster. Project Willow, a government-backed initiative, is exploring green fuel alternatives for the site.

While Labour faces political challenges in Scotland, Starmer emphasised Grangemouth’s transformation as a “generational opportunity.” However, the SNP has criticised UK ministers for prioritising industrial funding in England over Scottish projects. With Scottish Labour struggling in polls, Starmer framed the funding as proof of his commitment to Scotland’s future.

THE TELEGRAPH

The UK government has pledged £200mn to Grangemouth, hoping to secure its future after Petroineos, part-owned by Jim Ratcliffe, announced the refinery’s closure due to high energy costs and net-zero policies. The site, a major employer in Scotland, will be converted into a fuel import terminal, with redundancy notices already issued to workers.

Prime Minister Keir Starmer claims the funding—managed through the £27.8bn National Wealth Fund—will attract private investment, transforming Grangemouth into a hub for biofuels and hydrogen energy. However, unions argue more money is needed, while Labour’s Scottish poll numbers continue to slide ahead of Holyrood elections.

The SNP has accused Westminster of prioritising English projects over Scotland. Meanwhile, Ratcliffe warns Britain’s chemicals industry faces “extinction” due to soaring costs. With Labour’s economic decisions under fire, the Grangemouth deal is a high-stakes bet for Starmer’s government.